Which of the following is not a characteristic that defines a reportable operating segment according to U.S. GAAP?

Question

Quizplus · Accepted Answer

According to U.S. GAAP, a reportable operating segment should have discrete financial information available, engage in business activities from which it may earn revenues and incur expenses, and have operating results regularly reviewed by the enterprise's chief operating officer. However, there is no specific threshold percentage of total company revenues, assets, or net income that defines a reportable operating segment. The 20% threshold is a commonly used benchmark, but it is not a requirement under U.S. GAAP. Thus, choice D is the correct answer as it is the only option that does not accurately define a reportable operating segment according to U.S. GAAP.

Which of the Following Is Not a Characteristic That Defines